Figure 4-6
-In the figure above, with IS0 shifting to IS1 against the upward-sloping LM curve, crowding-out is the result that
A) income stays at YO3.
B) income rises to Y1 instead of to Y2.
C) income rises to Y1 instead of staying at YO3.
D) income rises to Y2 instead of to Y1.

Question

Figure 4-6 
-In the figure above, with IS0 shifting to IS1 against the upward-sloping LM curve, crowding-out is the result that
A) income stays at YO3. 
B) income rises to Y1 instead of to Y2. 
C) income rises to Y1 instead of staying at YO3. 
D) income rises to Y2 instead of to Y1.

Quizplus · Accepted Answer

The Answer of Figure 4-6 
-In the figure above, with IS0 shifting to IS1 against the upward-sloping LM curve, crowding-out is the result that
A) income stays at YO3. 
B) income rises to Y1 instead of to Y2. 
C) income rises to Y1 instead of staying at YO3. 
D) income rises to Y2 instead of to Y1.

Figure 4-6 -In the Figure Above, with IS0 Shifting to IS1 Against